Three years ago, a company purchased an asset with a cost of $300,000. The asset has a useful life of 10 years. It's estimated that the asset will produce 100,000 units. Residual value is $15,000. In the current year, the asset produce 9,000 units. If the company uses the straight-line method of depreciation, how much depreciation should be record in the current year?

Question 17 options:

	$42,000
	$30,000
	$28,500
	$27,000

Question 18 (1 point)

Consider an asset that was separated into its main components (A, B and C). The $1,200,000 purchase price was allocated to these components in equal proportions. The useful lifes are 12, 4, and 7 years for components A, B and C respectively. Neither of the components (except for component C for which a $18,000 value is anticipated) is expected to have a residual value. Assuming straight-line depreciation, total annual depreciation expense relating to these assets is

Question 18 options:

	a) $125,120
	b) $190,476
	c) $100,000
	d) $187,905

Question 19 (1 point)

In January, 2010, Korro Corporation purchased a mineral mine for $5.1 million with removable ore estimated by geological surveys at 2 million tons. The property has an estimated value of $300,000 after the ore has been extracted. The company incurred $1.5 million of development costs preparing the mine for production. During 2010, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Pratt should expense for 2010?

Question 19 options:

	a) $960,000
	b) $1,200,000
	c) $1,260,000
	d) $1,680,000